THE STORY OF SUCCESS

2012

2

А 101

М 3

MRH

Big transport ring

Total area: 29,800 km2

Economically-active population: 553 000

Major cities: Kaluga (pop 343 000),

Obninsk ( pop 106 000)

Climate: Continental temperate

KALUGA REGION: AT THE HEART OF IT ALL!

LUDINOVO

OBNINSK

3 ECONOMIC LEADERSHIP: OUR TOP POSITIONS!

«Kaluga region is one of the least bureaucratic places regarding investments. If Russia follows this way, the progress will

be significant». Vladimir Putin

42 Enterprises opened

5,3 bn $

(2006 - 2011)

Total foreign investments

169,4 % Actual GRP growth

since 2006

1st in Central Federal District

3rd in Russia

Foreign Direct Investment (FDI) per capita

1st in Russia

Growth rate

of industrial production

(August 2011)

111.1% Average annual GRP

growth

BB National long-term rating

(Fitch Ratings)

25,363 Jobs.

Created: 12,425

1st in Russia

Index of manufacturing

growth (2011)

4 VISION AND STRATEGY: CLUSTER POLICY!

CENTRAL AUTOMOTIVE CLUSTER: A REALITY TODAY! 5

6

Berlin-Сhemie/Menarini

Novo Nordisk, Nearmedic Plus,

Galenika, AstraZeneca

Pharmaceutical Industry

training Center

Hi-tech industrial park

project

Innovation Development

Agency of Kaluga Region

PHARMACLUSTER: THE BEST START!

Logistics operators:

Logistic centers

Airport

Customs

Smolensk

region

Bryansk

region

Tula

region

KALUGA

OBNINSK

LUDINOVO

SUKHINICHI

KIEV

7

MOSCOW

MOSCOW MODERN LOGISTICS

Orel

region

TRAINING CENTERS 8

Total area – 7000 sq m

Extra in 2012 – 10000 sq m

Workshops and labs – 20

Studying at the same time – up to 400 people

Short-term educational programs – 70

State professional training programs – 20

Number of trained personnel – 6,500

For Volkswagen – 4,000

For PCMA – 1,800

Automotive industry training center

February 2012 – the start of training

Studying at the same time – up to 250 people

Dual training system (theory and practice)

Technical and educational basis of the international level

Pharmaceutical industry

9

More than 2 million sq m —

Total volume of new housing projects

2 times increase

in housing construction by 2014

«Eastern

Balabanovo»

Project

400 000 sq m

«Voskresenskoye»

Project

130 000 sq m

«Swiss Village»

Project

350 000 sq m

«Zapadny»

Project

300 000 sq m

«Pravgorod»

Project

1 000 000 sq m

«Vorotynskaya

Roshcha»

Project

45 000 sq m

«Ecodolie»

Project

50 000 sq m

100% energy — efficient technologies`

use in construction by 2014

sq m of housing per citizen —

20% growth by 2016

..

HOUSING FOR PROFESSIONALS

10 INVESTMENT CLIMATE: AMONG THE BEST IN RUSSIA!

Investor-friendly product: industrial parks

Stable investment philosophy

System of development institutions

Comprehensive set of financial incentives

One project team: your project is our project

Equal support for every investor

Free choice of supplier

No bureaucracy, no middlemen No hidden or unspecified charges

Our word is a cast iron guarantee

11

Obninsk

Detchino

Grabtsevo А-park

Kaluga-Yug

Rosva

Lemminkainen, private IP

Total industrial parks’ area: 4,742 ha

Still available: 2,522 ha

Residents: 50

Vorsino

INDUSTRIAL PARKS: A BUSINESS-FRIENDLY PRODUCT!

• Industrial Parks

•BrownFields

•Build to Suit

Maklaki

12

«GRABTSEVO» Industrial park

«VORSINO» Industrial park

«ROSVA» Industrial park

«KALUGA-YUG» Industrial park

INDUSTRIAL PARKS

DEVELOPMENT INSTITUTIONS: A COMPLETE SET!

Agency for Regional

Development

of the Kaluga Region

«Industrial

Logistic»

LLC

Agency for

Innovation Development of

the Kaluga Region

Kaluga Region

Development

Corporation

Leading operator

for innovation and high-tech

economy sector development

Attracting investments

into the Kaluga Region;

state consultant for investors

The main instrument for logistic projects

implementation in the Kaluga Region

State operator for establishment and

development of industrial parks and

engineering infrastructure

14

15

Tax exemption period 0%

3.22 - 9.66 inclusive

9.66 - 16.1 inclusive

Over 16.1

Total amount of actual capital investments within

first three years of the investment project’s

realization

(m $) Decreased tax rate 15,5 %

3.22 - 16.1 inclusive

16.1 - 32.2 inclusive

32.2 - 64.4 inclusive

Over 64.4

1 year

2 years

3 years

Total amount of actual capital investments within

first three years of the investment project’s

realization

(m $ )

1 year

2 years

3 years

4 years

Property tax

Profit tax

TAX BENEFITS

16 EXAMPLE OF PROJECT IMPLEMENTATION SPEED

17

YOUR

LOGO

Be successful